In SaaS, your recurring revenue is more than just a monthly snapshot—it’s a window into the future. That’s where Committed Monthly Recurring Revenue (CMRR) comes in. This forward-looking metric helps SaaS finance teams anticipate revenue changes before they happen.

Let’s break down what CMRR is, how to calculate it, and why it’s essential for strategic planning.

What Is Committed Monthly Recurring Revenue (CMRR)?

CMRR expands on your Monthly Recurring Revenue (MRR) by factoring in known upcoming changes. It includes:

• New Bookings: Revenue from new customers with signed contracts
• Expansion MRR: Upsells or cross-sells from existing customers
• Churned MRR: Expected losses from cancellations or downgrades

While MRR tells you where you stand now, CMRR helps you project where you’re headed.

How to Calculate CMRR

Here’s the formula:

CMRR = Current MRR + New Bookings + Expansion MRR – Churned MRR

Example:
Let’s say your current MRR is $100,000. You’ve booked $10,000 in new deals, $5,000 in upsells, and expect $3,000 in churn. Your CMRR would be:

$100,000 + $10,000 + $5,000 – $3,000 = $112,000

That $112,000 gives you a more accurate forecast for your upcoming revenue.

Why CMRR Is a Must-Track Metric

Knowing your CMRR helps you:

Improve Forecast Accuracy

You can make better predictions by including contracts you’ve already signed or churn you know is coming.

Build Investor Confidence

CMRR shows that your revenue growth isn’t just aspirational—it’s backed by data.

Make Smarter Decisions

With clear expectations for revenue, you can plan hiring, budgeting, and product investments more confidently.

CMRR vs MRR: Know the Difference

• MRR is a snapshot of your current recurring revenue.
• CMRR adds foresight—adjusting for future changes you already know about.

Tracking both helps you stay grounded in the present while planning ahead.

Automate CMRR Tracking with TrueRev

Manually calculating CMRR every month is a pain—and risky as your business scales. TrueRev takes the hassle out of it by automatically tracking MRR, CMRR, and other key metrics in real time.

With TrueRev, you get:

• Real-time data synced from your billing system
• Fewer manual errors
• More time to focus on strategy, not spreadsheets

Ready to upgrade your forecasting?

→ Read the full SaaS School article on CMRR to go deeper